BEIRUT: The impacts of the Israel-Hamas war are set to push crisis-hit Lebanon’s economy back into recession, the World Bank said Thursday, blaming mainly a “shock to tourism spending.”
Lebanon’s southern border has seen regular exchanges of fire, mainly between the Israeli army and Hamas ally Hezbollah, since the Gaza conflict erupted on October 7.
The impact of the conflict had reversed a slight recovery for Lebanon, which has battled a deep economic crisis for years, the Washington-based bank said in a report.
“Prior to October 2023, economic growth was projected — for the first time since 2018 — to slightly expand in 2023,” by 0.2 percent, the World Bank said.
It attributed the positive pre-war expectations mainly to summer tourism and remittances from the large Lebanese diaspora.
But, it added, “the current conflict and its spillovers into Lebanon are expected to quickly reverse the tepid growth projected for 2023, as the economy returns to a recession.”
The economy will contract “primarily due to the shock to tourism spending,” the report said.
More than half of travel reservations to Lebanon have been canceled for winter holidays, the World Bank said, warning that “tourism cannot, on its own, serve as the basis for an economic recovery.”
Real gross domestic product is expected to decline “to between minus 0.6 percent to minus 0.9 percent depending on the extent of the tourism shock,” it added.
Lebanon’s economy collapsed in late 2019, plunging most of the population into poverty, according to the United Nations.
Bickering politicians, widely accused of corruption, have been unable to agree on measures to save the economy, or even on selecting a new head of state.
Lebanon has been governed by a caretaker government with limited powers and without a president for more than a year as lawmakers have repeatedly failed to elect a new leader.
Gaza war to throw Lebanon back into recession: World Bank
https://arab.news/bwfwd
Gaza war to throw Lebanon back into recession: World Bank

- Lebanon’s southern border has seen regular exchanges of fire, mainly between the Israeli army and Hamas ally Hezbollah
- The impact of the conflict had reversed a slight recovery for Lebanon
Netanyahu appoints adviser with Trump ties to lead ceasefire talks
- The US-born Ron Dermer is a Cabinet minister who’s widely seen as Netanyahu’s closest adviser.
- Dermer currently serves as Israel’s strategic affairs minister
The US-born Ron Dermer is a Cabinet minister who’s widely seen as Netanyahu’s closest adviser. He previously served as Israel’s ambassador to the US and is a former Republican activist with strong ties to the Trump White House.
Israel and Hamas have yet to negotiate a second and more difficult phase of the ceasefire, and the first ends in early March. Palestinians and Arab countries have universally rejected US President Donald Trump’s proposal to remove the Palestinian population from Gaza and take over the territory.
Since the war in Gaza was sparked by Hamas’ attack on Oct. 7, 2023, more than 50,000 people have died in Gaza and Lebanon and nearly 70 percent of the buildings in Gaza have been devastated, according to health ministries in Gaza and Lebanon. Around 1,200 people were killed in Israel during the Oct. 7 attack.
Here’s the latest:
Netanyahu appoints close adviser with Trump ties to lead ceasefire negotiations
An Israeli official said that Prime Minister Benjamin Netanyahu has appointed a close confidant to lead negotiations for the second stage of the ceasefire with Hamas.
The official says that Cabinet Minister Ron Dermer will head the Israeli team. Previous talks have been led by the heads of the Mossad and Shin Bet security agencies.
Talks have not yet started on the second stage, which is meant to include an end to the war, return of all hostages and Israeli pullout from Gaza.
The official spoke on condition of anonymity because the appointment has not been officially announced.
The US-born Dermer is widely seen as Netanyahu’s closest adviser. He previously served as Israel’s ambassador to the US and is a former Republican activist with strong ties to the Trump White House.
Dermer currently serves as Israel’s strategic affairs minister, where he has been a key player in relations with the US as well as Gulf Arab countries.
Tens of thousands of Palestinians flee West Bank refugee camps

- The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups
JERUSALEM: Tens of thousands of Palestinians living in refugee camps in the occupied West Bank have left their homes as a weeks-long Israeli offensive has demolished houses and torn up vital infrastructure in the heavily built up townships, Palestinian authorities said.
Israeli forces began their operation in the refugee camp in the northern West Bank city of Jenin on Jan. 21, deploying hundreds of troops and bulldozers that demolished houses and dug up roads, driving almost all of the camp’s residents out.
“We don’t know what’s going on in the camp but there is continuous demolition and roads being dug up,” said Mohammed Al-Sabbagh, head of the Jenin camp services committee.

The operation, which Israel says is aimed at thwarting Iranian-backed militant groups in the West Bank, has since been extended to other camps, notably the Tulkarm refugee camp and the nearby Nur Shams camp, both of which have also been devastated. The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups. They have been raided repeatedly by the Israeli military but the current operation, which began as a ceasefire was agreed in Gaza, has been on an unusually large scale. According to figures from the Palestinian Authority, around 17,000 people have now left Jenin refugee camp, leaving the site almost completely deserted, while in Nur Shams 6,000 people, or about two thirds of the total, have left, with another 10,000 leaving from Tulkarm camp.
“The ones who are left are trapped,” said Nihad Al-Shawish, head of the Nur Shams camp services committee. “The Civil Defense, the Red Crescent and the Palestinian security forces brought them some food yesterday but the army is still bulldozing and destroying the camp.” The Israeli raids have demolished dozens of houses and torn up large stretches of roadway as well as cutting off water and power, but the military has denied forcing residents to leave their homes.
“People obviously have the possibility to move or go where they want, if they will. But if they don’t, they’re allowed to stay,” Lt. Col. Nadav Shoshani told reporters.
The operation began as Israel moved to banish the main UN Palestinian relief organization UNRWA from its headquarters in East Jerusalem and cut it off from any contact with Israeli officials.
The ban, which took effect at the end of January, has hit UNRWA’s work in the West Bank and Gaza, where it provides aid for millions of Palestinians in the refugee camps.
Israel has accused UNRWA of cooperating with Hamas and said some UNRWA workers even took part in the Hamas-led attack on communities in southern Israel on Oct. 7, 2023 that set off the 15-month war in Gaza.
Tens of thousands of Palestinians flee West Bank refugee camps

- The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups
JERUSALEM: Tens of thousands of Palestinians living in refugee camps in the occupied West Bank have left their homes as a weeks-long Israeli offensive has demolished houses and torn up vital infrastructure in the heavily built up townships, Palestinian authorities said.
Israeli forces began their operation in the refugee camp in the northern West Bank city of Jenin on Jan. 21, deploying hundreds of troops and bulldozers that demolished houses and dug up roads, driving almost all of the camp’s residents out.
“We don’t know what’s going on in the camp but there is continuous demolition and roads being dug up,” said Mohammed Al-Sabbagh, head of the Jenin camp services committee.

The operation, which Israel says is aimed at thwarting Iranian-backed militant groups in the West Bank, has since been extended to other camps, notably the Tulkarm refugee camp and the nearby Nur Shams camp, both of which have also been devastated. The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups. They have been raided repeatedly by the Israeli military but the current operation, which began as a ceasefire was agreed in Gaza, has been on an unusually large scale. According to figures from the Palestinian Authority, around 17,000 people have now left Jenin refugee camp, leaving the site almost completely deserted, while in Nur Shams 6,000 people, or about two thirds of the total, have left, with another 10,000 leaving from Tulkarm camp.
“The ones who are left are trapped,” said Nihad Al-Shawish, head of the Nur Shams camp services committee. “The Civil Defense, the Red Crescent and the Palestinian security forces brought them some food yesterday but the army is still bulldozing and destroying the camp.” The Israeli raids have demolished dozens of houses and torn up large stretches of roadway as well as cutting off water and power, but the military has denied forcing residents to leave their homes.
“People obviously have the possibility to move or go where they want, if they will. But if they don’t, they’re allowed to stay,” Lt. Col. Nadav Shoshani told reporters.
The operation began as Israel moved to banish the main UN Palestinian relief organization UNRWA from its headquarters in East Jerusalem and cut it off from any contact with Israeli officials.
The ban, which took effect at the end of January, has hit UNRWA’s work in the West Bank and Gaza, where it provides aid for millions of Palestinians in the refugee camps.
Israel has accused UNRWA of cooperating with Hamas and said some UNRWA workers even took part in the Hamas-led attack on communities in southern Israel on Oct. 7, 2023 that set off the 15-month war in Gaza.
More than one million Syrians return to their homes: UN

- “Since the fall of the regime in Syria we estimate that 280,000 Syrian refugees and more than 800,000 people displaced inside the country have returned to their homes,” Filippo Grandi, the UN High Commissioner for Refugees
GENEVA: More than one million people have returned to their homes in Syria after the overthrow of Bashar Assad, including 280,000 refugees who came back from abroad, the UN said on Tuesday.
Assad was toppled in December in a rebel offensive, putting an end to his family’s decades-long grip on power in the Middle Eastern country and bookmarking a civil war that broke out in 2011, with the brutal repression of anti-government protests.
Syria’s war has killed more than half a million people and displaced millions from their homes.
The Islamist-led rebels whose offensive ousted Assad have sought to assure the international community that they have broken with their past and will respect the rights of minorities.
“Since the fall of the regime in Syria we estimate that 280,000 Syrian refugees and more than 800,000 people displaced inside the country have returned to their homes,” Filippo Grandi, the UN High Commissioner for Refugees, wrote on the X social media platform.
“Early recovery efforts must be bolder and faster, though, otherwise people will leave again: this is now urgent!” he said.
At a meeting in Paris in mid-February, some 20 countries, including Arab nations, Turkiye, Britain, France, Germany, Canada and Japan agreed at the close of a conference in Paris to “work together to ensure the success of the transition in a process led by Syria.”
The meeting’s final statement also pledged support for Syria’s new authorities in the fight against “all forms of terrorism and extremism.”